Two fi shermen have to decide how many fish to catch from a common pool resource. The amount of sh captured depends on their effort level. That is, the total output can be represented by the following function:

ei x (7000 - 3 x E), where i = 1,2, E is the combined effort by fi shermen 1 and 2; E = e1 +e2 and ei is the individual e¤ort of every fisherman i. The fi xed cost of fi shing is $600 and the variable cost is 20e^2

i . What

is the optimal e¤ort level?

#### Top Answer

Please find... View the full answer

## This question was asked on Dec 07, 2012 and answered on Dec 07, 2012.

### Recently Asked Questions

- E14.2 Read the boxes “Can You Beat the Market? Part I” and “Can You Beat the Market? Part II” in this chapter. Next, go to the course website, where

- PIN: a=3 b=5 c=7 d=9 e=2 Please see picture below and show work, thanks!

- the graph of a function F is illustrated. Use the graph of F as the first step toward graphing the following function. F(x)= 2F(x/2)-2